Which of the Following Characteristics Does NOT Apply to Cash

question 127

Multiple Choice

Which of the following characteristics does NOT apply to cash equivalents?

• A) short-term
• B) highly-liquid
• C) readily convertible into cash
• D) highly sensitive to interest rate changes

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Definitions:

Market Prices

The amount of money required to purchase a good or service in a market.

Quantities Demanded

The total amount of a good or service that consumers are willing and able to purchase at a particular price in a given market.

Substitute Products

Products that can serve as replacements for each other; when the price of one increases, the demand for the substitute is likely to increase.

Price

The charge in currency projected, demanded, or provided in recompense for something.